BPCL, Varun Beverages, United Spirits: How to trade these 3 buzzing stocks

Indian benchmark indices settled with big cuts on Tuesday amid the pessimism of hawkish signals from the US Fed in its upcoming policy meeting. The consistent FIIs selling also dampened the sentiments. BSE Sensex crashed 1,064.12 points, or 1.30 per cent, to end the session at 80,684.45. NSE's Nifty50 tumbled 332.25 points or 1.35 per cent, to settle at 24,336 for the day.

Some buzzing stocks including United Spirits Ltd, Bharat Petroleum Corporation Ltd (BPCL) and Varun Beverages Ltd are likely to remain under the spotlight of traders for the session today. Here is what Vishnu Kant Upadhyay, AVP - Research and Advisory at Master Capital Services has to say on these stocks ahead of Wednesday's trading session:

United Spirits | Buy | Target Price: Rs 1,662-1,675 | Stop Loss: Rs 1,485

United Spirits is revealing a bullish setup with the formation of an Inverse Head and Shoulders pattern on the daily chart, a classic reversal signal indicating strength. The stock has decisively broken above the neckline resistance near Rs 1,550, supported by a rise in volumes, reflecting strong buying interest. The 21-day EMA remains aligned above the 100-day EMA, further reinforcing positive momentum. The 14-day RSI is at 64, indicating bullish strength without overbought conditions. The breakout suggests the stock could potentially rally towards the Rs 1,662-1,675 levels in the near term, with strong support at Rs 1,485.

Varun Beverages | Buy | Target Price: Rs 693-710 | Stop Loss: Rs 612

Varun Beverages is showing a bullish breakout from a symmetrical triangle pattern on the daily chart, signaling potential upside momentum. The stock has sustained above its 21-day EMA at Rs 630, while the 100-day EMA at Rs 612 serves as strong support. The rising RSI at 61 reflects improving strength and bullish sentiment, while the MACD is in positive territory, supporting a continuation of the uptrend. Following the breakout from symmetrical triangle, prices are now all set for Rs 693 and then Rs 710, with strong support placed around Rs 612.

Bharat Petroleum Corporation | Buy | Target Price: Rs 318-325 | Stop Loss: Rs 268

BPCL is now witnessing a sign of a potential rebound after witnessing a correctional fall of around 25 per cent from its all-time high. On the monthly chart, the stock has retraced to a strong support zone near Rs 280, which aligns with the prior breakout levels observed in late 2023. This level holds significance as it coincides with the 21-period EMA, lending additional technical support. The recent increase in trading volumes during the prior up-move signals strong institutional participation which reinforces confidence in BPCL’s bullish trajectory with potential targets for Rs 318 and then Rs 325.